FLAT EARNINGS FOR GLOBE TELECOM | Marvin Germo

FLAT EARNINGS FOR GLOBE TELECOM

By: Marvin Germo | August 4, 2019

Net Income For Q2

Globe Telecom, Inc. posted flat earnings during the second quarter of this year. The company reported an attributable net income of P5.32 billion from April to June which is a 0.5% growth from the previous year’s P5.29 billion in the same period. If we take a look at the earnings on a year-to-date basis, the telecommunication firm has already generated a 20.8% higher attributable net income or equivalent to P12.05 billion. This was initially supported by the solid performance of Globe during the first quarter of the year. So, let’s take a look at some interesting points regarding the performance for the second quarter.

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Slow Growth In Revenues

Globe disclosed that one of the major reasons why the earnings remained flat was because of the increase in infrastructure spending. The consolidated revenues of the firm nestled at P36.9 billion from April to June. This was 12% higher than the previous year, which was because of the increase in demand for broadband, mobile, and corporate data businesses. Its mobile segment’s revenues were up by 4% year-on-year during Q2 or equivalent to P27.65 billion. The prepaid brands of Globe contributed a lot to these revenues. As of now, the company has a total mobile subscriber of 92.94 million. 90.31 million of these are Globe Prepaid and TM subscribers while the rest is 2.63 million.

Earnings From Services

Aside from the mentioned above, home broadband revenues of Globe stood at P5.35 billion in the second quarter which was 20.8% higher than last year because of the 21% rise in its subscribers. Likewise, the corporate data revenues had 12% jump or P3.19 billion due to high usage of internet and domestic services, increase in circuit count, growth in managed and cloud-based services, and strong demand for different data connectivity solutions. Meanwhile, the fixed-line voice revenues were down by 8% to P684 million.

Total Revenues and Expenses 

Taking a peek at the company’s year-to-date results, the total revenues reached P81.52 billion or 9.2% higher from last year’s same period. The rising of mobile data revenues to P34.04 billion triggered the revenue results although the mobile voice dropped by 17% to P12.32 billion and mobile SMS by 24% to P8.28 billion. On the other hand, total expenses during the quarter grew by 6% to P63.2 billion since the firm is exerting effort to develop its network infrastructure so to cater to the increasing subscriber base. The capital spending was recorded at P19 billion during the first half of 2019 and 75% of it was allotted for data-related requirements.

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